New retirement age law to be tabled in Parliament next month

KUALA LUMPUR, Sept 29 The government said today it will go ahead and table the Private Sector Retirement Age Act when Parliament convenes next month, a day after Human Resource Minister Datuk Dr S. Subramaniam said the Act was only a suggestion.

Subramaniam was quoted by Bernama Online today as saying that the proposed law needed Parliaments approval before the government could agree with any demands on the private sectors retirement age limit.

There have been requests for the retirement age for the civil service to be the same as the private sector. So we will draft the Private Sector Retirement Age Act and table it during the upcoming parliamentary session next month, said Subramaniam (picture) who is also Segamat MP.

On Monday, Malaysian Trades Union Congress (MTUC) secretary-general Abdul Halim Mansor told The Malaysian Insider that private sector employees will be allowed to work until they are 64, with a minimum mandatory retirement age of 60 under a new law being drafted by the government.

The Private Sector Retirement Age Act will mandate retirement at 60, with an option for a four-year extension.

This means that the retirement age will be raised from 55 to 60. A technical committee has met two or three times with the last coming just before Hari Raya, Halim had said.

The Malaysian Insider understands that the change, which will benefit six million workers, will also require an amendment to the Employment and Employees Provident Fund Acts.

It is also understood that except for one employers representative, a unanimous agreement has been reached on the proposal.


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